Back to Home
FRM
(Fixed-Rate Mortgage)
An FRM (Fixed-Rate Mortgage) is a home loan with a constant interest rate and monthly payment over its entire term (commonly 15 or 30 years). Unlike ARMs, FRMs provide stability against market fluctuations.
FRMs are ideal for long-term homeowners, as they simplify budgeting—e.g., a $300,000 30-year FRM at 6% always costs $1,799/month. However, they typically start with higher rates than ARMs. The CFPB notes FRMs dominate the U.S. market (75% of mortgages) due to predictability. Refinancing an FRM is common when rates drop significantly. Lenders evaluate DTI, FICO, and LTV during approval.
FRMs are ideal for long-term homeowners, as they simplify budgeting—e.g., a $300,000 30-year FRM at 6% always costs $1,799/month. However, they typically start with higher rates than ARMs. The CFPB notes FRMs dominate the U.S. market (75% of mortgages) due to predictability. Refinancing an FRM is common when rates drop significantly. Lenders evaluate DTI, FICO, and LTV during approval.